Indonesia's big infrastructure projects languish amid bureaucratic infighting
Despite promises to speed up work on major infrastructure projects, an airport rail link highlights the challenges facing the president
Investors hoping for President Joko Widodo to speed work on Indonesia's infrastructure projects have been disappointed, with a plan for a US$2 billion airport railway line in the capital spotlighting the delays and bureaucratic infighting involved.
Nearly half the 10 projects to which Widodo gave priority when he took office last year are languishing for lack of cooperation among ministries he has been unable to whip into line.
"Somebody has to coordinate the orchestra of stakeholders," said Emma Sri Martini, head of government-owned infrastructure finance firm Sarana Multi Infrastruktur (SMI). "If decisions … are slow, there won't be activity in any sector."
"We want to focus specifically on infrastructure and manufacturing developments," he added.
Widodo's promised splurge on roads, ports and power plants is critical as Indonesia's traditional engines of growth, consumption and commodity exports, are faltering, while businesses are shedding jobs fast.